SD-19 Parts Management GuideIn todays acquisition environment-characterized by rapidly changing designs, increased risk for Department of Defense DoD weapon systems and equipment acquisition contracts due to an increase in the use of commercial part types, offshore manufacture of parts, and Diminishing Manufacturing Sources and Material Shortages DMSMS-the need for contractors to have an effective Parts Management Program PMP is greater than ever before.The PMP is an integral part of the acquisition process for design, development, modification, and support of weapon systems and equipment.

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Parts Management Effectiveness (Metrics)

To measure the effectiveness of a PMP, the parts management representative, PMB, or IPT should collect data to quantify its progress and identify trends. A basic metric is the percentage of preferred parts used, calculated as follows:

(number of preferred parts in BOM ÷ total number of parts in BOM) x 100. Other metrics may be based on program needs.

Feedback

An important element of effective parts management is feedback. The parts management engi- neer needs feedback from all the functional areas to ensure that standardization requirements

are meeting the objectives of the parts management plan. Feedback also is useful for identifying possible problem areas in a PMP. Sources of feedback information include the following:

•  Subcontractors. Difficulties a subcontractor may be experiencing in manufacturing an item can often be alleviated by part substitutions. If the prime contractor maintains the design configuration of a subcontracted component, communication between the prime and the subcontractor is important to ensure that these changes are properly reflected in the parts management documentation.

•  Quality deficiency reports. Reports of quality problems with parts come from many sources; use of this information can preclude use in future designs of parts with ongoing quality issues.

•  Customers. Problems identified by the customer on fielded systems often indicate a need for parts selection changes.

•  Suppliers. Part or component suppliers are valuable sources of information about the avail- ability of items. Information from these sources can also help identify high-cost items and potential duplicate part numbers.

There are many sources of, and uses for, feedback information. The important thing to re- member is that parts management is a dynamic practice. It needs periodic adjustments based on data and experience acquired from initial design all the way through production, sustainment, and material disposal. Other areas of feedback include design engineering, purchasing, manu- facturing, logistics support, and PMATs.

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